The FBR Steel Sector Update covers two official orders issued on 19 October 2026: STGO 29 requires electronic production and dispatch monitoring, while STGO 28 adds three manufacturers to an existing electricity-based sales tax list.
Businesses should assess these developments separately. A monitoring obligation and eligibility for a particular tax mechanism involve different compliance checks.
Table of Contents
FBR Steel Sector Update: STGO 29 Monitoring Requirements
Covered registered melters, re-rollers and composite units—including toll, conversion and contract manufacturers—must install, integrate, test and operationalize the prescribed system at each facility and active production line by 30 December 2026.
The order takes effect immediately.
| Monitoring stage | Main purpose |
|---|---|
| Billet or ingot identification | Count inputs or output |
| Product-size verification | Identify dimensions and profiles |
| Finished-product monitoring | Count and classify products |
| Dispatch verification | Reconcile weighbridge data with production |
Configuration depends on the unit’s manufacturing process.
Procurement, installation and maintenance must use an authorized vendor. Requirements include video analytics, real-time data transmission, calibration and at least one month of local NVR storage.
Manufacturers must report specified failures or tampering within one hour and give 30 days’ advance notice of changes affecting the system.
Unmonitored goods cannot be removed or supplied under the order’s conditions. Private cameras or manual weighbridge entries do not substitute for the approved process.
Read the complete official STGO 29 of 2026, including its technical requirements and implementation provisions.
STGO 28: Which Manufacturers Were Added?
STGO 28 amends the taxpayer list in STGO 16/2026 for the Rs.5 sales tax per unit of electricity consumed mechanism.
| Added manufacturer | NTN |
|---|---|
| K.B Enterprises | 8279122 |
| G.M.B Steel Furnace | 4220416 |
| Rajput Steel Industry | 0962986 |
The amendment applies immediately to all electricity connections of these taxpayers.
Their eligibility is linked to the criteria under SRO 1245(I)/2026. The list may subsequently be revised, and eligibility can be examined by FBR or the relevant field formation.
This amendment does not establish a universal Rs.5-per-unit treatment for every steel business.
Review the official STGO 28 of 2026 before relying on the list.
Practical Preparation for Steel Manufacturers
A useful starting point is to assign one internal coordinator who can bring together production, dispatch, IT, accounts and tax staff.
Prepare a facility file containing:
- A list of active production lines and products
- A production-flow and dispatch-point map
- Available equipment and connectivity information
- Vendor quotations and proposed implementation schedules
- Electricity connection and billing records
- Existing production, stock and weighbridge records
Ask the proposed vendor to identify which requirements are included in its quotation, what testing will be performed and what evidence will demonstrate successful commissioning.
Record unresolved questions and seek written clarification before making assumptions about the facility’s treatment.
Keep Tax Billing and Monitoring Reviews Separate
For internal control purposes, maintain two workstreams.
The first should address the monitoring project: survey, equipment, integration, testing, staff responsibilities and operating procedures.
The second should address tax treatment: the correct taxpayer identity, electricity connections, relevant notifications and supporting billing records.
This approach helps prevent a vendor’s technical proposal from being treated as confirmation of tax eligibility.
Registration information can be checked using our STRN verification guide.
Coordinate With Existing Sales Tax Processes
During implementation, compare the information used by production staff, dispatch teams and accounts. Differences in product names, units or document references can make later reconciliation difficult.
A consistent internal reference system can help staff trace a transaction from production to dispatch, invoice and return.
For related processes, read our sales tax return filing guide and sales tax invoice requirements.
Frequently Asked Questions
What is the steel monitoring implementation deadline?
STGO 29 specifies 30 December 2026 for installation and operational readiness.
Does STGO 28 automatically cover every steel manufacturer?
No. It adds the three taxpayers named in the table above to the existing list.
Is ordinary CCTV sufficient for STGO 29?
A private camera arrangement does not replace the prescribed approved monitoring process.
Is the STGO 27 deadline the same as the steel monitoring deadline?
No. They are separate orders. For the other covered manufacturing sectors, see our FBR video surveillance deadline update.
What should a manufacturer do before choosing a vendor?
Prepare its facility information, review the official requirements and ask for a documented scope, implementation schedule and testing plan.
